Diddy Confirms He Rejected Plea Deal From Prosecutors Before Federal Trial

Diddy was back in court Thursday for one final hearing before his criminal trial ... and he told the judge he rejected a plea deal presented to him by federal prosecutors.

The Bad Boy Records founder strolled into a Manhattan courtroom wearing a tan jail jumpsuit, looking gray and thin ... and he waved to the public and media seated in the gallery before taking a seat at the defense table between two of his attorneys, Teny Geragos and Brian Steel.

Diddy was smiling and in good spirits ... chatting with Teny and Brian ... and he was chummy and seemed unfazed by the upcoming trial.

The judge asked Diddy if he rejected a written plea offer from the government and Diddy replied, "Yes, I did."

Diddy was also asked if he was aware he would potentially serve more time in prison if he's convicted than if he took a plea deal ... and Diddy told the judge he understood the stakes.

While we don't know what the prosecutors offered, typically they offer a sentence close to what the defendant would receive if convicted. Commonly, they don't expect the defendant to accept the deal ... instead, prosecutors are guarding against grounds for appeal.

If prosecutors didn't offer it, it could give Diddy a post-conviction argument that his attorneys didn't effectively represent his interests and, therefore, he should get a new trial.

Thursday's hearing also touched on jury selection ... with the judge saying jury selection would begin Monday, May 5, at 8 AM sharp, with the goal of selecting a jury within 3 days.

Diddy has pled not guilty to all five charges he's facing -- two counts of sex trafficking, two counts of transportation to engage in prostitution, and one count of racketeering.

Prosecutors revealed last week they offered Diddy a deal that was turned down ... but this is the first time Diddy's acknowledged so himself.

This may be the last time we see Diddy in a jail uniform ... the judge is allowing him to wear button-down dress shirts, pants and shoes without laces for his upcoming trial.